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SCIENCE ARTICLE
Factors affecting corporate social responsibility of Vietnamese commercial banks
1
Department of Economics, Tay Nguyen University, Viet Nam
Submission date: 2024-08-11
Final revision date: 2024-12-18
Acceptance date: 2025-01-24
Online publication date: 2025-03-13
Publication date: 2025-04-17
Corresponding author
Management 2025;(1):43-64
KEYWORDS
JEL CLASSIFICATION CODES
M10
M14
M21
TOPICS
ABSTRACT
Research background and purpose: In Vietnam, a developing country, enterprises, including commercial banks, are endeavoring to assimilate
into the international business community by implementing corporate social responsibility (CSR). Although numerous studies have investigated
the influence of CSR on corporate financial performance, the motivations that drive commercial banks to partake in social initiatives have not been
comprehensively examined, particularly in the context of a developing country such as Vietnam. Consequently, this study seeks to evaluate the factors that
influence the social responsibility of commercial banks in Vietnam.
Design/methodology/approach: A multi-method approach was employed to measure CSR using both quantitative and qualitative methods for 29 commercial banks from 2012 to 2021. Monetary data was specifically used to evaluate the extent of corporate social responsibility expenditure (CSRE). The content analysis method was utilized to create the corporate social responsibility disclosure (CSRD) index. This study examines the influence of factors such as profitability, bank size, bank age, financial leverage, and listing status on stock exchange. To examine the causal relationships among these factors, several statistical methods were utilized, including Pooled OLS, fixed effects model (FEM), random effects model (REM) and the Feasible Generalized Least Squares (FGLS).
Findings: The regression results revealed that profitability, bank size, and bank age positively influenced CSR. In contrast, the bank’s financial leverage negatively affected CSRE, and there was no significant correlation between listing status and CSR.
Value added and limitations: The limitation of this study lies in its exclusive focus on fundamental factors impacting the social responsibility of banks, including profitability, size, financial leverage, bank age, and listing status. Numerous other factors have the potential to influence social responsibility
and warrant further investigation, such as board of directors’ characteristics,
ownership structure, crises, and the bank’s corporate vision
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